The Impact of Sustainability Strategies on Corporate Performance

Companies are developing strategies to realize value based upon the concept of sustainability. Businesses recognize that sustainability can create a strategic advantage, and can become instrumental to their long-term viability. The concept has dramatically expanded the scope of measuring organizational performance into the economic, social, and environmental components that are often referred to collectively as the ¿triple bottom line.¿ Organizations are discovering that specific products and processes can have profound environmental and social implications besides normal economic benefits. Within this context, organizational decision-makers must contend with numerous stakeholder issues, pressure from environmental agencies, and increased social consciousness that affects workers, consumers, and communities. These factors must be balanced by a reasonable return on investment and long-term organizational success. The interaction between these conflicting pressures and barriers makes it difficult for organizations to adopt sustainability strategies.